It's a Home Protection Plan (not to be confused with your homeowner's insurance policies) which generally cover the breakdown of appliances, plumbing and electrical issues, etc - inside your property. All Home Warranty plans are different, so it is important to do your research and read the fine print!
You can purchase a home protection plan for your home or your rental property, and most companies never ask about the current oondition of your appliances or systems. Most companies cover these items...
Washers and dryers
Home Warranty / Home Protection Plans can also cover pool systems and spas... all Home Warranty plans are different!
But BEWARE! There are companies out there that sound great, start great, and end as SCAMS! National Home Protection seems to be the latest - now iwht frozen assets and a New York State Attorney suing them... they are out of business. American Home Shield seems to be the most popoular - and I have personally used them for many years. Sometimes claims can be frustrating if you disagree with the repair person's diagnosis of the problem... but generally you can argue your case with the home warranty company.
I have personally seen refrigerators and AC units be replaced completely! I have seen countless washer and dryers and ovens and microwaves be repaired. For many homeowners, these home warranty plans turn out to be huge money savers!
***If you are considering buying a policy for your rental property, it could be a great tax deduction!
HOW THEY WORK: Something breaks. You call or fill out an online claim form. They have a local repair person contact you. You pay a small deductable to that company (predetermined deductibe price when you buy the plan). That local repair company gives a diagnosis. If a repair can be made, it's made! If a repair can't be made, the appliance is then replaced (check policy, some companies are different about replacement procedures and coverage). Most companies require no extra money to replace an unrepairable appliance. (I was once witness to a refrigerator break-down... old 15 year old fridge that couldn't be repaired, so AHS asked them what model the owners would like to replace it with - or if they'd prefer a credit and they could go shopping for a new one themselves! -owners MADE $200 because they found a fantastic new fridge WITH a rebate!!!).
Most plans cost from $250-$400 per year, with a deductible from $45-75 per repair. Often you can add a "pool pump" for around $15 more. Some companies will charge a slight fee to cover the AC units. Sometimes they won't cover all electrical. You need to read everything, and look for opinions and reviews online before purchasing a plan.
Home Protection Plans offer "peace of mind". Budget that (approximate) $300 per year, and know that if a major appliance breaks - the plan has you covered. If TWO break down in a year? You've SAVED for sure!!
--For Landlords: great peace of mind and a tax deduction
--For Sellers: give your buyers peace of mind, plans are normally transferable
--For Buyers: just do it - you don't know the property's history yet, give yourself peace of mind and save yourself any "buyers remorse"!
A few companies to check into:
American Home Shield, Choice Home Warranty, Nationwide Home Warranty
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